"The Pendulum Has Swung Too Far": Goldman Sees AI Capitulation As Hedge Fund Gains Evaporate

For three months, the AI trade has been running in reverse, and this week it ran out of road.

According to Goldman's Mark Wilson, hedge funds sold global AI stocks for a sixth straight day this week, and the cumulative position cut over those six sessions "is as extreme as anything we've seen since the launch of ChatGPT." The problem? Wilson thinks that's exactly the wrong time to give up:

The Damage Report